Allegations of clandestine removal of polished vitrified tiles and evasion of duty were primarily based...

Allegations of clandestine removal of polished vitrified tiles and evasion of duty were primarily based on private documents/records recovered from premises of M/s K.N. Brothers/Shree Ambaji Enterprises, Shroff, and office of Shri Pravin Shirvi, Broker/middlemen. CESTAT held that opportunity of cross-examination was not provided, violating principles of natural justice. Reliability of statements was doubtful as there were discrepancies in amounts mentioned. Cross-examination of witnesses is mandatory u/s 9D of the Act. Untested statements of third parties cannot be sole basis for adverse conclusion against assessee. Positive and tangible evidence is required to establish clandestine removal, not assumptions and presumptions. Entire demand was theoretical and theoretical. Impugned order set aside and appeal allowed. .....

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